I have been using iPod classics and iMods for many years. I am wondering what kind of DAPs are out there now with relatively high storage capacity with good sound. I think 32Gig would be about the smallest I would consider. Suggestions?

Simple and off the shelf is a sansa clip plus/zip with a 64 gig micro sd card.

Next you could upgrade your ipod (depending on generation) with either a 240 gig toshiba hard drive of ebay. If you have a 5/5,5 gen you can also get a 256 msata ssd drive (need an adapter for this to work).

I have been using iPod classics and iMods for many years. I am wondering what kind of DAPs are out there now with relatively high storage capacity with good sound. I think 32Gig would be about the smallest I would consider. Suggestions?

If you're not among those who don't want to lug around a few more 32gb or 64gb microSDHCs because apparently a city train commute is too long and boring that they need to switch cards and risk losing one between the other passengers' feet, this one's an interesting option : http://www.head-fi.org/t/651769/fiio-x3-thread-update-april-21st

That means that, theoretically, you have unlimited storage. In practice, you are limited only by how many microSDHC you can afford to buy or carry at any given time.

The iBasso DX100 has 64Gb internal memory plus a microSD slot for up to another 64Gb for each card you want to carry. Plus Wifi to stream from your smartphones data feed if you want truly limitless music.